Germany extends funding for LNG-powered ship propulsion

Tuesday, 12 January 2021
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Germany has extended the deadline for grants for equipping and retrofitting seagoing vessels to use LNG as marine fuel for another year, while LNG trucks on German motorways will continue to be except from paying tolls.

The Government said the deadline to encourage LNG-powered shipping has been extended to December 31, 2021, because of the difficulties caused by the Covid-19 pandemic.

The Ministry said that due to the circumstances many shipping projects could not be implemented during 2020.

“We reacted to this unforeseeable crisis situation and extended the funding guidelines for an additional year. Further projects are to be started in 2021, which will also boost investment in environmentally friendly ship propulsion,” said Enak Ferlemann, Parliamentary State Secretary at the Federal Minister for Transport and Digital Infrastructure (BMVI).

“Despite the global crisis, we must continue to promote the sustainability of our shipping,” he added.

“That is why we continue to campaign consistently for the use of LNG as a low-emission alternative marine fuel and a pioneer for climate-friendly shipping, both in terms of the fleet renewal of our own federal ships and German shipping as a whole,” stated Ferlemann. Under the German LNG funding guidelines, grants for investing in LNG propulsion for seagoing vessels over between 40 percent and 60 percent of costs, depending on the size of the company.

Ferlemann added that as a result of the first two calls for funding, a wide variety of projects have already benefited from the subsidies from the BMVI for investments in environmentally friendly ship propulsion.

The BMVI is hoping to boost the use of the fund which at present has provided €30 million ($37M) in a total of 12 equipment and retrofitting projects.

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